American Shipping Co (AMSC) has finished 2016 on a positive note by boosting both its quarterly and full year adjusted profit.
The Jones Act tanker owner reported quarterly adjusted profit of $5.8m against $2.24m a year earlier.
Its full year adjusted net profit was $16.3m, up from $1.8m in the corresponding period of the previous year.
AMSC explained its long-term bareboat charter helped the company offset the weak market conditions.
Pal Magnussen, AMSC’s chief executive, said: “The Jones Act tanker market remained oversupplied in the fourth quarter, although we are beginning to see a trend of charterers replacing articulated tub barges (ATBs) with tankers.
“This dynamic currently leads to high utilisation of our assets.
“As a bareboat provider with assets contracted on long-term charters, we enjoy stable, predictable cash flows during periods of market weakness.”
Magnussen added AMSC is well-positioned to benefit from a market recovery through the profit sharing component of its charter agreements.
Higher oil prices and an expected rise in US shale oil production are two factors that AMSC considers will give it a boost.
